TMI Blog2019 (10) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of the facts of the present case and considering the submission made by the Ld. Counsel for the assessee before the AO and the CIT(A), we are of the considered opinion that the CIT(A) was not justified in sustaining the addition on account of difference in the accounts of the creditors. We, therefore, set aside the order of the CIT(A) and direct the AO to delete the addition. Appeal filed by the assessee is allowed. - ITA No.614, 638/Del/2015 - - - Dated:- 9-10-2019 - SH. BHAVNESH SAINI AND SH. R. K. PANDA, JJ. Appellant by Sh. Sanjay Malik, CA Sh. Sankalp Malik, CA Respondent by Smt. Naina Soin Kapil, Sr. DR. ORDER R.K PANDA, J. These are cross appeals. The first one is filed by the assessee and the second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings the AO noted that assessee has shown sundry creditors to the tune of ₹ 1,22,75,695/-. On the basis of details furnished by the assessee the AO issued letters u/s. 133 (6) to certain creditors. From the confirmations received from some of the creditors he noted difference in the case of the following creditors :- Name Difference Amount Amit Textile ₹ 1,33,784/- Kunal tech Fab India ₹ 10428/- New India Colour ₹ 2000/- Vishal Dyeing Chemical ₹ 7008/- M/s. Maya International Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n statement cannot be considered at this stage. However the facts is reconciliation statement was filed before the AO as well as CIT (A). An index was also filed before the Ld. CIT (A) which has been overlooked. Referred to page no. 110 111 of the paper book. Page no. 1 of the paper book shows the balance of trade creditors in the books of the assessee and balance with the suppliers in their books and the difference, it is seen that the difference is credit difference. (i.e. the balance payable is less) Reconciliation statement was filed at page no.2 and 3 of the index paper book. The same was filed before Ld. CIT (A) also and not considered by him. In case of New Indian Color Company, the confirmation was filed at page no.7 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he paper book. (Refer Page No.31). In case of Vishai Dyes Chemicals, the confirmation was filed at page no. 32 and the difference was only because of balance of petty expenses debited to the tune of ₹ 200 and bill issued on 31st March, which was received in next financial year. There was an opening balance of ₹ 9308/- and the same was duly reconciled, however Ld. CIT (A) was wrong on facts on disallowing the same. A chart was also filed which shows balance, bills and payment made by the firm, which furnished at page no. 40 of the paper book. (Refer Page No. 32) In case of Maya International, copy of account was filed at page no. 33 34, the difference was only because of two bills in one there is a difference of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. A perusal of the details filed in the paper book shows that the assessee has filed the following details before the AO as certified in the paper book. 12. We find the various details furnished by the assessee before the CIT(A) were summarily rejected by him on the ground that the assessee has not furnished any explanation before the AO. In our opinion the assessee in the instant case has fully discharged the onus cast on him by giving sufficient reasons before the AO and CIT(A) regarding the discrepancies in the accounts. Further it is a case where the liability payable is less than the balance shown by the creditors in 5 out of the 6 cases. Further the AO has not disputed the purchases from the said parties and has accepted the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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